Draft rules supporting the new currency restriction legislation have been released by Treasury. The legislation bans the use of cash for some transactions of more than $10,000, and has just been passed by the House of Representatives.
The Currency (Restrictions on the Use of Cash) Rules 2019 specifies, among other things, the transactions that will generally not be subject to the about-to-be-legislated currency restrictions.
Broadly, the payments not subject to the cash payment limit are:
- payments related to personal or private transactions (other than transactions involving real property)
- payments that must be reported by an entity under anti-money laundering and counter-terrorism legislation, provided, broadly, the entity with a reporting obligation complies (or is reasonably expected to comply) with their obligations under that legislation
- payments made or accepted by a public official in the course of their duties where it is necessary for the payment to be made in cash for the performance of those duties and payments made or accepted by Australian government agencies where the payment is foreign currency produced for a foreign government
- payments that only equal or exceed the cash payment limit because the payment is part of a transaction involving collecting, holding or delivering cash and this is undertaken in the course of an enterprise of collecting or delivering cash (that is, providing cash-in-transit services)
- payments that only equal or exceed the cash payment limit because payment is or includes an amount of digital currency
- payments that occur in exceptional situations where no alternative method of payment could reasonably be used. Readmore
